Fyshwick Large Format Retail centre sells for $17 million in hotly contested sale by Burgess Rawson from CBRE
A prominent Large Format Retail asset in Canberra’s bustling Fyshwick precinct has sold for $17 million, reflecting a yield of 5.70% and demonstrating continued investor appetite for quality retail investments.
The national expressions of interest campaign, led by Yosh Mendis and Geoff Sinclair from CBRE alongside Guy Randall from Burgess Rawson ACT, attracted strong investor interest nationwide, with 11 offers received at its close.
Located at 17 Iron Knob Street, Iron Knob Square is a fully leased 5,068sqm Large Format Retail centre anchored by national tenants, including Chemist Warehouse.
CBRE Senior Director Yosh Mendis said the sale highlights the strong demand for well-located Large Format Retail centres, particularly those anchored by nationally recognised tenants. Investors remain confident in the resilience of daily-needs retail, and Canberra continues to attract significant private and institutional capital looking for secure income streams.
The property spans a substantial 10,163sqm landholding and offers both on-grade and underground parking for more than 150 vehicles. Eleven offers were received from purchasing groups across Australia, highlighting the strong competition for secure retail investments amid tightening yields and limited supply.
Chemist Warehouse, recently merged with ASX-listed Sigma Healthcare (ASX: SIG), brings significant covenant strength as part of a pharmaceutical powerhouse with a $34.5 billion market capitalisation and a network of more than 1,200 pharmacies. The property benefits from fixed annual rent increases of between 2.5% and 4%, further enhancing its long-term income profile.
Strategically located opposite the Canberra Outlet Centre and surrounded by major national retailers such as Bunnings, Officeworks, Amart, and Harvey Norman, Iron Knob Square enjoys high traffic exposure and a strong local catchment. Its location, just five kilometres from Canberra’s CBD and 3.5 kilometres from Canberra International Airport further underpins the asset’s long-term investment appeal.
Mr Mendis said the sale to an interstate private investor adds to a series of significant retail transactions in the ACT, reinforcing investor confidence in Large Format Retail as a robust and defensive asset class that offers income growth and strong underlying land value.
